- 100% tariff on all films made outside of U.S shocks global Film Biz
- 31,000 jobs SA film jobs potentially affected
- 3 Strategic Solutions
In a move that has sent shockwaves through the global entertainment supply chain, Donald Trump has announced plans to impose a 100% tariff on all films produced outside the United States.
What This Means for South Africa: A Blow to Jobs, Investment, and Global Visibility?
Should Donald Trump’s proposed 100% tariff on all films produced outside the U.S. is implemented, it could severely impact South Africa’s growing film industry, which contributes over R7.1 billion annually to the national GDP and supports more than 31,000 jobs directly, according to the National Film and Video Foundation (NFVF). For every R1 spent in the industry, an additional R1.89 is generated elsewhere in the economy, reflecting a strong economic multiplier effect.
South Africa has become a sought-after location for international productions including major projects like Prime Video’s G20 and The Wheel of Time due to its competitive tax incentives, skilled workforce, and diverse filming landscapes. A drop in U.S.-based productions choosing to film locally would ripple through the economy, affecting everyone from set designers and makeup artists to hospitality and tourism services that benefit from film crews.
As the global film ecosystem becomes increasingly politicized, South Africa, already battling funding constraints could see a sharp decline in foreign investment and international collaboration, weakening its position as a global film destination.
3 Strategic solutions
A strategic solution to mitigate the impact of Trump’s proposed 100% film tariff on the South African film industry would involve a three-pronged approach: strengthening domestic capacity, diversifying international partnerships, and amplifying the value of local storytelling on a global stage.
1. Strengthen and Expand Domestic Production Capacity
- Boost local funding and tax incentives: The Department of Trade, Industry and Competition (DTIC) and the National Film and Video Foundation (NFVF) could expand rebate schemes and funding for local productions to make up for the potential loss of U.S. investment.
- Invest in local talent and infrastructure: Upskill more crew members and build technical infrastructure (sound stages, post-production facilities) to increase South Africa’s competitiveness as a self-sufficient content hub.
2. Diversify International Collaborations
- Target new global partners: Build co-production treaties and strategic partnerships with countries like India, South Korea, Nigeria, and European film markets, which are actively investing in content.
- Leverage BRICS and Global South networks: These alliances can provide alternative markets, distribution deals, and production partnerships outside of U.S. dominance.
3. Promote Local Stories for Global Platforms
- Champion uniquely South African narratives: Netflix’s success with local hits like Blood & Water and Queen Sono proves there is global demand for African stories. Government and industry can collaborate to pitch, package, and export more locally produced content.
- Develop South Africa as a streaming content exporter: Build content that appeals to international OTT platforms (Netflix, Showmax, Amazon, etc.), less reliant on theatrical releases that may be tariffed.
By shifting from dependency on foreign productions to ownership of content and storytelling, South Africa can build a resilient, globally competitive film economy, regardless of U.S. trade barriers. Additionally, Marketers and media leaders should take note: This isn’t just about movies. It’s about messaging, ownership of cultural capital, and where, and how, global narratives are produced. In an era where content is global, but politics are increasingly nationalistic, strategic adaptability will be key.
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